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| RBS boss 'has taken £3m lump sum' | RBS boss 'has taken £3m lump sum' |
| (9 minutes later) | |
| Former RBS chief executive Sir Fred Goodwin has already taken a £3m advance on his £703,000 annual pension, Treasury Minister Lord Myners has said. | Former RBS chief executive Sir Fred Goodwin has already taken a £3m advance on his £703,000 annual pension, Treasury Minister Lord Myners has said. |
| The revelation came as Lord Myners said he "did not negotiate, settle, or approve" Sir Fred's pension. | The revelation came as Lord Myners said he "did not negotiate, settle, or approve" Sir Fred's pension. |
| Speaking to the Treasury Committee, Lord Myners reiterated that the decision was made by the RBS board. | Speaking to the Treasury Committee, Lord Myners reiterated that the decision was made by the RBS board. |
| Lord Myners said RBS directors had been wrong in assuming they could not reduce Sir Fred's controversial pension deal. | Lord Myners said RBS directors had been wrong in assuming they could not reduce Sir Fred's controversial pension deal. |
| He said they had "consistently misdirected themselves" over the issue. | He said they had "consistently misdirected themselves" over the issue. |
| Sir Fred resigned from RBS in October after the bank needed a government rescue, and has continued to refuse to agree to have his pension reduced. | Sir Fred resigned from RBS in October after the bank needed a government rescue, and has continued to refuse to agree to have his pension reduced. |
| Lord Myners said it was still not too late for Sir Fred "to do the right thing". | Lord Myners said it was still not too late for Sir Fred "to do the right thing". |
| He added that Sir Fred had indicated that he may return the £3m advance in exchange for a larger pension pot. Sir Fred's overall pension pot stands at £16.9m. | |
| However, RBS denied this was the case, insisting that Sir Fred's pension pot could not, and would not be increased. | |
| 'Beyond comprehension' | 'Beyond comprehension' |
| Lord Myners said he had been "very clear" with RBS and the other banks that there should be "no rewards for failure" and that payments for departing directors should be minimised. | Lord Myners said he had been "very clear" with RBS and the other banks that there should be "no rewards for failure" and that payments for departing directors should be minimised. |
| There is still the option for Sir Fred to do the right thing Lord Myners Profile: Lord Myners | There is still the option for Sir Fred to do the right thing Lord Myners Profile: Lord Myners |
| He added that it was "beyond my comprehension" that RBS directors had not exercised their discretion to reduce Sir Fred's pension. | He added that it was "beyond my comprehension" that RBS directors had not exercised their discretion to reduce Sir Fred's pension. |
| "Someone at RBS took the decision to treat him [Sir Fred] more favourably than required," said Lord Myners. | "Someone at RBS took the decision to treat him [Sir Fred] more favourably than required," said Lord Myners. |
| Lord Myners said RBS was wrong to think it had no choice but to give Sir Fred his full pension from the age of 50, because this arrangement should only have been available to employees voluntarily retiring early. | Lord Myners said RBS was wrong to think it had no choice but to give Sir Fred his full pension from the age of 50, because this arrangement should only have been available to employees voluntarily retiring early. |
| "Sir Fred Goodwin didn't have the option of staying. The board had decided he must go," he said. | "Sir Fred Goodwin didn't have the option of staying. The board had decided he must go," he said. |
| He added that the RBS board could have dismissed Sir Fred with just 12 months salary. | He added that the RBS board could have dismissed Sir Fred with just 12 months salary. |
| "It would have been a quite straightforward and simple thing to have done," said Lord Myners. | "It would have been a quite straightforward and simple thing to have done," said Lord Myners. |
| RBS decision | RBS decision |
| Lord Myners has found himself at the centre of the storm surrounding Sir Fred's pension, facing accusations that he effectively signed off the former RBS chief executive's £16m pension pot. | Lord Myners has found himself at the centre of the storm surrounding Sir Fred's pension, facing accusations that he effectively signed off the former RBS chief executive's £16m pension pot. |
| He once again denied that this had been the case. | He once again denied that this had been the case. |
| "The decision on the pension was made by the board directors of RBS. I made no decision," he said. | "The decision on the pension was made by the board directors of RBS. I made no decision," he said. |
| "My approval was not sought, I was given no information, I sought no information." | "My approval was not sought, I was given no information, I sought no information." |
| As an expert in pension funds, Lord Myners became financial services minister in October 2008, as the government was negotiating taking large stakes in RBS, Lloyds TSB and HBOS. | As an expert in pension funds, Lord Myners became financial services minister in October 2008, as the government was negotiating taking large stakes in RBS, Lloyds TSB and HBOS. |
| Last month, RBS reported that it made a loss of £24.1bn in 2008 - the largest annual loss in UK corporate history. | Last month, RBS reported that it made a loss of £24.1bn in 2008 - the largest annual loss in UK corporate history. |
| The government now owns a 68% stake in the lender. | The government now owns a 68% stake in the lender. |